Transportation transportation smoothing smoothing

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Unformatted text preview: nsportation Transportation Smoothing Smoothing Logistics Logistics Costs of Maintaining Control System Costs 2 Characteristics of Inventory Systems Demand Demand May Be Known or Uncertain May May be Changing or Unchanging in Time May Lead Times - time that elapses from placement of order until time it’s arrival. Can assume known or unknown. it’s Review Time. Is system reviewed periodically or is system state known at all times? Treatment of Excess Demand. Backorder all Excess Demand Backorder Lose all excess demand Lose Backorder some and lose some Backorder Inventory that changes over time Inventory perishability perishability obsolescence obsolescence Relevant Costs Holding Costs - Costs proportional to the quantity of Holding Costs inventory held. In...
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